According to the UN, by 2050 nearly two-thirds of the global population will live in cities, and urban populations will increase by 2 billion people.

While this mass migration will bring new, exciting opportunities for city residents, it also brings daunting challenges to urban environments and the businesses operating there.

The increase in traffic congestion, emissions and the demands on energy sources have not stemmed the tide of people moving to cities, and they have created rising concern among environmentalists, city officials and business leaders.

The question we are grappling with is simply stated but not easily solved: As the social and environmental effects of this urban migration unfold, how do we ensure a healthy and sustainable setting for city dwellers – and for the businesses supporting these local economies?

Solutions start with innovation and collaboration

When it comes to the challenges associated with this new urban environment, there’s no silver bullet. But there are logical ways to develop solutions that will require innovative and flexible thinking from a range of stakeholders.

A number of progressive thinkers already are creating viable, scalable solutions for crowded metropolises. From public sector investments that reduce our reliance on personal vehicles to concepts that would replace the traditional automobile in busy neighborhoods, municipalities are building cities that are healthier and more sustainable.

Businesses are stepping up as well. With the development of hybrid and electric cars and greater research investments from the automotive industry, the future of sustainable urban mobility is in sight.

However, personal mobility is just one piece of the puzzle. If we really want to reduce congestion, we must bring the same kind of innovation and partnership to the movement of goods to and from cities.

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“We want to give city dwellers more control over when, where and how they receive their packages.”

As a global logistics provider, UPS is involved in a growing number of sustainable solutions. Our approach has always been a collaborative one, focused on forging partnerships to create and implement practical, sustainable logistics practices.

For example, in London we’re part of a public-private consortium that is testing the use of electric- and foot-powered bikes for urban deliveries. And in Hamburg, Germany, we’re using zero-emissions eBikes to pick up and deliver packages on the city’s narrow streets.

By using the same mix of technology and creative thinking in places such as Dublin, Paris and Leuven, we are working on ways to engage cities to ease congestion while ensuring the timely movement of goods that global commerce demands.

Testing and deploying alternative fuels and technologies is only part of the equation. We’re also seeing results from consolidating “final-mile” deliveries, the last segment in the logistics network, where goods are delivered to the consumer or business that ordered them.

We’re reaching further in our collaboration efforts to give city dwellers more control over when, where and how they receive their packages. These technology-driven solutions help avoid missed deliveries and eliminate the environmental impact of wasted trips.

Sustainability requires ongoing commitment

While progress is being made, it’s clear no one entity can meet the future needs of sustainable cities.

In a research study by UPS in collaboration with GreenBiz, we clearly saw the importance of collaboration to create sustainable change. As suggested by Ani Dasgupta, Global Director of the World Resources Institute’s Ross Center for Sustainable Cities, “If you want to continue a path of reform or change, you really need a coalition that can sustain or live beyond a single mayor. That is why you need to bring all of the interested parties together so the momentum of change is sustained for a longer time.”

Click here to download the whitepaper.

To succeed, businesses need to work together with city leaders and their constituents to create custom solutions.

The goals are clear: reduce personal vehicle use, improve quality of life and reduce carbon footprints. But each city is different, and an intimate understanding of the unique needs of each urban market is essential.

City planners, community groups, academics and businesses will need insight-driven models informed by robust data to develop the right solutions. By applying these insights to different approaches, we can identify and share best practices – helping to solve common urban challenges around the world.

Redefining progress, ensuring the future

The long-term health of cities matters. And it’s critical that we work together to ensure bright futures for our urban centers.

As we look ahead, I encourage cities, businesses and academia to continue to redefine how we achieve progress and work together on an array of new solutions.

This will require innovation, partnership and experimentation to ensure cities remain a desirable place to live and work for generations to come.

This article first appeared on the Justmeans blog and was republished with permission.

Drone delivery is one of the hottest topics – if not the most heavily discussed – in transportation and logistics circles these days. People ask me all the time how drones might change the delivery landscape and what we’re doing to leverage another disruptive technology.

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“There’s definitely a lot to learn and plenty of reason for excitement about drones.”

There’s plenty of speculation out there about a future where drones fill our skies. At UPS, we don’t speculate. We study and we strategize. There’s definitely a lot to learn and plenty of reason for excitement about drones.

Just this week, we fueled the excitement ourselves when we successfully tested a residential package delivery by a drone launched from the roof of a UPS delivery truck. Both the drone and the delivery truck were made by Ohio-based Workhorse Group.

The drone, which operates autonomously, launches from the truck, delivers a package to a home and then returns to the delivery truck while the driver continues along the route to make a separate delivery.

In this groundbreaking test, we showcased how drones might reduce miles driven while creating operating efficiencies. We are eager to explore how any technology can make us smarter, faster and more sustainable.

It’s what we’ve done throughout our nearly 110-year history. Whether it’s gondolas in Venice, electric bicycles in Hamburg or motorcycles in Latin America, we’re always looking for new and better ways to get items to your doorstep.

Drones could be another innovative leap for UPS, one that improves our business, increases customer satisfaction and diminishes our environmental footprint.

Click to view infographic

Plenty of questions remain, but let’s take a look at this progress toward wide-scale drone delivery.

A radical test

This collaboration with Workhorse is different than anything we’ve ever done with drones. It has implications for future deliveries, especially in rural locations where homes are far apart and our drivers often have to travel long distances to make a single delivery.

Imagine a triangular delivery route where the stops are miles apart by road. Sending a drone from a package car to make just one of those stops can reduce costly miles driven and vehicle emissions.

It’s not hard to see the economic imperative for drone use. Really, it’s simple math.

Drones could aid drivers at various points along their routes, saving time and meeting growing customer service needs in the age of e-commerce.

But it’s important to remember that drones can’t ever replace our drivers, who offer a level of service and human interaction that our customers tell us they value, respect and trust. We need a human touch in many situations. That will never change.

Recent history with drones

UPS has been testing automation and robotics technologies, including drones, for years.

Last September, UPS staged a mock delivery of urgently needed medicine from Beverly, Mass., to an island three miles off the Atlantic coast.

UPS also has used drones extensively for humanitarian relief, partnering with third-party organizations to deliver life-saving medical supplies to hard-to-reach locations in Rwanda. Initiatives like these demonstrate the benefits of using drones to deliver packages in areas that don’t have established transportation infrastructure.

UPS also is testing drones to check inventory on high storage shelves in its warehouses. Unlike all of the previous tests, however, the most recent UPS drone test shows how the technology might assist with residential deliveries.

Hard-to-reach areas

Our initial experiments focused on hard-to-reach areas. The areas may be difficult to access because of damaged infrastructure. Or they could be remote locations like islands without regularly scheduled ferry service.

In fact, rural areas may have the most operational need for drones. These are places where UPS drivers have the longest routes with lower so-called “stop density,” compared with urban areas where we can drop off many items at one address.

Remaining questions

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“Drones could aid drivers at various points along their routes, saving time and miles.”

Last year, the U.S. Federal Aviation Administration (FAA) issued small unmanned aircraft systems rules that permitted some commercial use of drones and paved the way for expanded applications.

UPS is proud to serve on the FAA’s drone advisory committee. The committee will provide the FAA recommendations on key drone integration issues that ultimately will allow safe and secure operations of drones within the National Air Space System.

While the concept of commercial package delivery by drone may not be far away, enacting the appropriate regulations is complex. UPS test deliveries, for example, abide by FAA line-of-sight regulations.

Our latest drone test isn’t necessarily how we’ll integrate drones into our operation. We see it as a building block for continuous UPS innovation.

What excites us is the potential for drones to aid drivers at various points along their routes, helping them save time and miles – and making their job easier.

While some companies may be looking to drones to increase speed of delivery – to satiate the I-need-it-now consumer appetite – we think that’s only part of the potential.

Picture a 9-month-old baby attempting to walk. She toddles a few steps, stumbles and falls. If she’s ready, curious and committed, she hoists herself up again. And again. This process takes time and effort.

In the same way, companies are finding their way in environmental sustainability. As consumers increasingly seek sustainable products and services, many businesses are making sustainable improvements to operations, reducing costs and inefficiencies while proving what’s good for the planet can be rewarding for business.

Lowering carbon emissions and implementing changes to drive measurable environmental results can be challenging. It requires a balance of time, resources, stakeholder involvement and execution. Most importantly, it requires collaboration across a number of groups.

From my experience, this process is less painful and more effective if you first identify what you know – and what you don’t know about sustainability and your goals.

Find a better way

UPS has focused on creating efficiencies – a foundational element in sustainability – since our company was founded. Even still, rapid advances in technology and changes in market conditions have created an entirely different scene from what we witnessed in past decades. There’s much we know, but there’s so much more to learn.

Ten years ago, we began using a research-based method to expand our alternative-fuel and advanced-technology fleet. We call it our Rolling Laboratory. We sought to lower our emissions and solve logistics challenges in a range of locations, environments and delivery conditions.

With service available in more than 220 countries and territories worldwide, UPS operates across a wide range of areas, from densely populated cities to deeply rural environments, often with many miles between delivery stops.

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“By committing to alt fuels such as RNG, we helped create a market.”

No single type of vehicle would serve all our needs. We also realized that our best strategy was to work directly with manufacturers, to continue testing new approaches to fuels and propulsion systems and to build our fleet from a range of approaches to meet our diverse needs.

We discovered, for example, that electric vehicles are best suited for urban environments where delivery stops are frequent and charging is easier.

We found that liquefied natural gas (LNG), compressed natural gas (CNG) and renewable natural gas (RNG) are the best available fuels for our vehicles that cover hundreds of miles at a time.

And we also learned that by making a commitment to new alternatives, such as RNG, we helped create a market that enables other commercial fleets to follow suit and make more sustainable choices.

Crawl, walk, run

This rolling-lab approach gets results. In 2012, UPS aimed to drive 1 billion clean miles with alternative fuel vehicles by the end of 2017. We hit our goal last August, more than a year early. Our alternative fuel and advanced technology fleet covers more than 1 million miles every business day in countries around the world.

The results have been remarkable: In 2015, our rolling laboratory helped avoid using 49 million gallons of conventional gas and diesel and decreased CO2 emissions by 150,000 metric tons.

Of course, we’re not done yet. Our lab keeps on rolling as we evaluate new technologies, gather new data and push forward with new innovations built on collaborative efforts.

Four steps

Former General Electric CEO Jack Welch said only companies that embrace the “ability to learn and translate that learning into action” will achieve the “ultimate competitive advantage.” Creating an environment of learning, testing your assumptions and taking action can help your business find a sustainable way forward.

You can inspire fresh thinking with these four steps.

1. Encourage innovation

Challenge yourself to do better. With more than 100,000 drivers logging more than 3 billion miles per year, UPS is balancing the need to meet growing demand for global trade and the calling to reduce our impact on the environment. For example, we made a long-term investment in RNG, a reusable fuel that captures naturally occurring methane before it converts into greenhouse gas. As we learned through our rolling laboratory, RNG provides a way to reduce our reliance on diesel fuel and allows us to actively participate in reducing greenhouse gases.

2. Adapt and tailor solutions

There’s no one-size fix across most operations. Technology constraints, product use, infrastructure availability, government policies and environmental or social goals all play a role. At UPS, the alternative fuel that works in one delivery environment or country may not be best in the 219 other countries and territories where we operate. So we deploy old-fashioned pedal power and electric-assisted bicycles in dense urban areas such as London and Hamburg. We use electric and hybridelectric vehicles in the U.S. and Europe. And we continue to explore and test new energy sources and technologies as they become available.

3. Crunch the data

Accurate information can point organizations in more sustainable directions. Each day, our On-Road Integrated Optimization and Navigation (ORION) system reveals data that helps UPS reduce the number of miles driven. Our rolling laboratory uses this information to reduce fuel, emissions and the time needed to achieve customer service requirements. Data helps us manage and maintain our vehicles. It helps new delivery options, such as UPS My Choice® and UPS Access Point locations, collaborate with package recipients and reduce congestion and emissions by eliminating missed delivery attempts.

4. Stay committed

Economic and market forces are constantly changing, and the political environment needed to foster investment and infrastructure development can be unpredictable. It’s critical to take a disciplined and accurate look at your situation, set clear objectives and then commit to collaboration to drive meaningful results. Anticipate obstacles and challenges – keep an eye on changing conditions that require new approaches. UPS has been adapting and adjusting its approach for 109 years. Our success is based on our ability to continuously seek operational improvements and our willingness to explore new ideas.

Analyzing, hypothesizing and testing are key to reaching your sustainability goals. One step at a time, taken conscientiously and in partnership with stakeholders, will help you reach your goal of a more sustainable organization.

Every morning, wake up to the blog that gives you the latest trends shaping tomorrow.

Mark Wallace is UPS Senior Vice President of Global Engineering and Sustainability.

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]]>https://longitudes.ups.com/four-steps-towards-sustainability/feed/24 step plantThe Urgency of Trade and TPPhttps://longitudes.ups.com/the-urgency-of-trade-and-tpp/
https://longitudes.ups.com/the-urgency-of-trade-and-tpp/#commentsTue, 07 Jun 2016 03:30:10 +0000http://longitudes.ups.com/?p=10858In a world that is being rewired and transformed, policy must keep pace, starting with approval of the largest and most far-reaching free-trade agreement in history.

The world is well along with what history will show as a great rewiring. This rewiring is massively and permanently changing global interconnections that have structured the world as we know it.

But with this transformation, we must ask two big questions: First, is trade policy up to the task of steering and leveraging the power of a re-wired world? And second, do we have a sense of urgency to make sure that it is?

The answer to the first question is: No, policy is lagging far behind possibility. The answer to the second question is: We’re not sure yet. But we may know soon.

America has much riding on the outcome. Because as we dither and delay, the world is moving on. Just like every day in our business, minutes count.

Emerging markets are investing in infrastructure and becoming global competitors with incredible speed. Power has shifted from seller to consumer, with empowered consumers demanding unlimited choice, convenience and control.

For those in the supply chain business, this rewiring brings both historic opportunity and historic challenge. Both center on how to make the rewiring of the planet work to the advantage of customers and consumers.

It’s easy to assume that technology can do the heavy lifting. But technology alone is merely circuits and code.

The textbooks say Edison’s genius transformation was not the light bulb. It was the electrical grid – a network that provided the power to make the light bulb useful in illuminating homes and businesses.

At UPS, we understand the power of networks. We’re a company that operates on the strength of assets that ride on the back of our integrated global network. Those assets – vehicles, aircraft, facilities and people – are critical. But their real value is demonstrated when they come together and form a network.

Our move to a networked world is reflected in the changing flow of trade and in the changing nature of trade agreements.

The General Agreement on Tariffs and Trade and World Trade Organization created rules for a global economy, where goods were made in one place and sold in another. So the focus on tariffs and other trade barriers made sense. But as the world has been rewired around supply and value chains, trade agreements have become broader, harder to negotiate and to understand.

There is plenty of ammunition for pro-trade disciples like ourselves. In the first full year after a free-trade agreement is reached, our business gets a 20 percent bump on average. What’s more, for every 22 packages that cross a border as part of our network, we create or maintain a job for a UPS employee.

We also know that trade has helped lift a billion people out of poverty, that 38 million American jobs depend on trade and that imports from foreign trading partners lower prices for Americans.

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“ If we see the world as it is, if we want to compete in that world seamlessly, effectively and with leverage, TPP must beapproved.”

Growth of trade also has coincided with historic progress – building economies, combating hunger, empowering women, expanding literacy and extending life.

All of this makes a compelling argument for the transformative power of global trade. But just as real is the fact that the blessings of trade have not been universally shared.

Income inequality is a fact. Stagnating wages are a fact. Jobs lost to less expensive countries are a fact.

We can argue that there are co-conspirators, whether robotics or recession. We can argue that trade drives exports and exports create jobs.

But none of that compares to the reality of a lost job or the fear that the loss is possible. For the vast majority, trade is conceptual and complicated. Mortgage payments are not.

As the two sides of the trade argument clash, the debate is currently the loudest around the agreement closest to the finish line – the Trans-Pacific Partnership.

TPP is the largest and most far-reaching free-trade agreement in history, connecting 800 million consumers in 12 nations across the Americas and the Asia-Pacific region.

It was built for the needs of digital commerce – to ensure that trade rules recognize the power, growth and special demands of interconnected consumers.

It breaks up the loggerhead at customs. It evens the competition for private service providers. It eliminates thousands of taxes in the form of tariffs, making American businesses more competitive in one of the world’s fastest-growing regions.

It acknowledges – with a full chapter – the importance of small business. Opaque regulations, complex paperwork and slow delivery of small shipments conspire to discourage small- and medium-size enterprises from venturing across borders. TPP will open doors for smaller players across all the member countries.

If we see the world as it is, if we want to compete in that world seamlessly, effectively and with leverage, TPP must be approved.

TPP is approaching the finish line, but there are still obstacles in its path. As we near the finish, it’s critical that we avoid two big mistakes.

One would be to assume the logic that free-trade advocates see in the rightness of global trade will win the day.

The other potential mistake is to be afraid to step up to the debate. We have to be visible. We have to be vocal. We have to argue our case in every forum available to us.

The stakes are rising, the misinformation is growing and the clock is ticking. It’s time to push TPP over the finish line.

Every morning, wake up to the blog that gives you the latest trends shaping tomorrow.

Mark Wallace is UPS Senior Vice President of Global Engineering and Sustainability.

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]]>https://longitudes.ups.com/the-urgency-of-trade-and-tpp/feed/1Stocksy_txp81c545acFb0100_Small_315894goldbrown2buttonThe Challenge of Transformationhttps://longitudes.ups.com/the-challenge-of-transformation/
https://longitudes.ups.com/the-challenge-of-transformation/#commentsThu, 17 Mar 2016 03:30:04 +0000http://longitudes.ups.com/?p=9975Innovative and flexible supply chains are needed to help Southeast Asia live up to its potential.

Among Internet users, the AEC has one of the world’s highest penetrations of social media, including the world’s second-largest community of Facebook users.

But even including economies like Singapore and Indonesia, e-commerce accounts for less than 1 percent of total retail sales.

Total Internet penetration is also low – about 25 percent – compared to 88 percent for North America, 73 percent for Europe and 28 percent for Africa.

The change that’s coming demands a much stronger broadband and mobile infrastructure.

It also demands building trust in online purchasing and improving security across borders.

It will also be vital to find ways to integrate cash transactions in areas where three-quarters of all transactions are COD and where fewer than one in 10 Southeast Asians has a credit card.

Gold Rush to the Last Mile

For the logistics industry, the region brings multiple opportunities and demands.

In short, it’s going to take an innovative and flexible network of supply chains to help e-commerce live up to its potential.

It should be no surprise that there’s a gold rush as competitors race to the last mile of delivery, where consumer expectations are highest.

We’re seeing big retailers like Alibaba and its new partner SingPost, online retailers like Lazada and Zalora and fast-growing players like Vietnam’s G-H-N enter the game.

As intra-Asia trade grows, the advantage is going to go to those who have built intra-Asia networks.

As in China, UPS is looking closely at our business model.

It will need to meet the demands of the same anywhere, anytime, any-media consumers you find in most any economy these days.

In Singapore, which the World Bank has named the world’s number one logistics hub, we created Philips/Western Digital’s Global Warrantees and Returns Center.

We also have a dedicated healthcare warehouse to handle cold storage and soon medical devices.

We operate a complex just-in-time supply chain for Benz Motorsports, which helps us deliver go-kart parts to Singapore direct from a factory in Italy – or get them overnight to the company’s racing team, wherever they are on the circuit.

In a place like Myanmar, the needs are more basic. But the opportunities to help drive growth are great.

We’re offering freight forwarding, contract logistics and express delivery in a newly liberalized country and economy that is becoming a magnet for foreign investment.

That means Myanmar businesses will now have one-to-three-day transit times across Asia, Europe and the U.S.

That’s absolutely critical to an emerging economy or for apparel manufacturers and others hustling to keep up with fast-changing fashion cycles.

Cost Advantage Need Logistics Support

The same is true for Nike in Vietnam and Seagate in Thailand. The cost advantage in developing economies must be supported by logistics.

The right logistics are critical to small- and medium-sized businesses, which at 96 percent of all AEC businesses and up to 53 percent of GDP, are vitally important to the economy.

For example, we handle logistics for a Vietnam builder of model helicopters that went from a 10 by 10 workshop to a 20,000-square-foot factory that sells all over the world including direct to consumers.

Of course, if all this could simply be left to market forces, competition would find a way.

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“Progress needs policy.”

But whether the economies are developed, developing or emerging, progress needs policy.

That includes modernizing and removing the bottlenecks from customs, building infrastructure, allowing the free flow of data, improving the security for goods in transit – especially in the air – and continuing to remove customs barriers.

The Trans-Pacific Partnership would help do all of those things.

The World Bank estimates that TPP will raise GDP by an average of 1.1 percent for the 12 member countries by 2030, and exports will rise more than 10 percent.

The TPP region is home to 600 million Internet users, and the agreement was crafted with digital trade in mind.

It establishes standards to make sure trade expands as fast as the Internet demands.

TPP negotiations were successfully concluded in October of last year.

Now the agreement awaits approval from domestic legislatures across the region.

Asia is in midst of an amazing and transcendent time. It already has changed the world – in the balance of economic power, human opportunity and in the flows of trade.

Looking ahead, there are more world-shaking changes to come.

China is transitioning its economic base by tapping into the power of a consumer market larger and hungrier than anything the world has ever seen.

Southeast Asia is transforming, taking 10 nations with diverse economies, governments and cultures and forging them into the next great global economic story.

For logistics, the past and the future meet, in the investments, technology, innovations, partnerships and policies that are recreating the industry.

Both the transition and the transformation mean the logistics sector must rethink and remake itself down to the foundations to meet the needs of millions of consumers it wasn’t built to serve.

And to tie together cultures and economies in ways that shape and accelerate a rising regional economy.

It’s a huge opportunity and a great test. The next five years will tell us who is ready for both.

Every morning, wake up to the blog that gives you the latest trends shaping tomorrow.

Mark Wallace is UPS Senior Vice President of Global Engineering and Sustainability.

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]]>https://longitudes.ups.com/the-challenge-of-transformation/feed/2iStock_000029599034_Smallgoldbrown2buttonChina in Transitionhttps://longitudes.ups.com/china-in-transition/
https://longitudes.ups.com/china-in-transition/#commentsWed, 16 Mar 2016 03:30:52 +0000http://longitudes.ups.com/?p=9963Logistics will play a critical role as Asia’s most powerful nation moves to a consumer economy.

UPS recently published a study called Made in China 2.0, which was based on feedback from 1,000 manufacturing decision-makers.

Sixty percent of the respondents said quality and service have moved to the top of the list of competitive advantage while cost has become less important.

While the priority on manufacturing quality and service is a progression, the shift to a consumer-driven economy is a full-blown economic and social disruption.

Most projections say that China’s consumers are going to power a 50 percent increase in the consumer sector – to $6.5 trillion dollars – in the next five years.

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“Asian consumers lead the world in tech adoption.”

Three factors are converging to fuel its growth.

First, the new middle class – well over 100 million people – will be joined by a freer-spending upper-middle class.

Second, a new generation of consumers – young, optimistic, educated and hungry for the things and experiences life has to offer – is coming.

Third, the one that is closely aligned to transportation and logistics, is e-commerce.

China is already the world’s largest e-commerce economy.

By 2020 online spending is projected to reach $1.6 trillion annually.

At that pace, Chinese consumers will be spending $438 million a day, $18 million an hour, $304,000 a minute.

Those are some big numbers that pose a big question: Can the logistics infrastructure, which has supported a cost-driven export economy, also support an in-country consumption economy?

The answer from my vantage point is no. Not even close.

Infrastructure Meets Reality

China’s logistics sector was built to be part of the cost equation. In those days, the cheaper you were, the more you grew.

That made logistics competitive, fragmented and, especially in the warehouse sector, stuck in the early stages of technology.

That fragile infrastructure is now running up against a new reality.

Our research confirms that Asian consumers lead the world in tech adoption. They also lead the world in buying by phone.

By 2019, half of all of their online purchases will be made using a smartphone.

But we also found that Asians are the least satisfied with both their online and in-store shopping experiences. That’s not a great starting place for the consumer economy.

Their dissatisfaction reflects the emergence of a new kind of entitled, empowered and impatient shopper. We call them “flex shoppers.” They use all channels and rely on technology to decide when, where and how they’ll receive their orders.

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“Failure is not an option.”

And therein lies the challenge for a Chinese logistics system: It was simply not built with today’s consumers in mind.

UPS in China is a byproduct of the same low-cost manufacturing economy and the need to cost-efficiently transport Chinese products.

We were built to connect China to the world. Our Shanghai hub, for example, can handle 36,000 pieces an hour – and get them to other Asian countries and across the world.

We’re currently adding more automation and other efficiencies to our warehouses, telematics to our fleet and partnering with domestic companies to extend our reach.

We recently announced that we were optimizing service in 33 cities where we already operate and that we were entering 20 additional cities in China.